If Sam, the Pizza Man, lowers the price of his pizzas from $6 to $5 and finds that sales increase from 400 to 600 pizzas per week, then the demand for Sam's pizzas in this range is:
A) inelastic.
B) elastic.
C) unit elastic.
D) inferior.

Question

Quizplus · Accepted Answer

When the price decreases, the quantity demanded increases leading to an elastic demand. We can observe a significant change in quantity demanded due to a change in price.

If Sam, the Pizza Man, Lowers the Price of His